Retail

Nordstrom: Finances Could ‘Become Distressed’ If Stores Stay Shuttered

Nordstrom

Nordstrom said the crisis arising from the novel coronavirus’ spread has had a “substantial impact” on its business. It detailed that impact in a regulatory filing with the U.S. Securities and Exchange Commission (SEC).

The department store retailer said it is not possible to forecast how long the pandemic will last, or the negative financial impact on the business, but it foresees its results for the quarter concluding on May 2 and after to be “adversely impacted in a significant manner.”

The department store retailer said in the SEC filing, “The longer our stores remain closed to the public, the greater impact it will have on our results of operations and financial condition, and if our physical locations remain closed to customers for an extended period of time our financial situation could become distressed.”

It did, however, note that the firm keeps bringing in sales and getting rid of excess inventory via eCommerce orders. Still, it doesn’t know when it will have the ability to open its brick-and-mortar stores again to shoppers. The firm had temporarily shuttered all physical locations to the public “without a firm date on when those stores will reopen.”

The company also noted that much of its staff have been given zero hours of work or put on leave but that “any or all of such employees may be called back to return to work at any time as the circumstances permit.” It is also providing all store staffers affected by the temporarily store closures with benefits through the conclusion of May.

Nordstrom also noted that its Executive Leadership Group would go without a portion of their salary, while Pete and Erik Nordstrom would decline their salaries between April and September.

In separate news, Neiman Marcus was to furlough some of its workers until a later time after it shuttered its stores due to the coronavirus pandemic per a report in late March. At the time it was noted that the locations would remain shuttered at least until April 30.

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